CIRC to Dilute 18.63 % Stake as CNGT Seeks 20 % Capital Increase via CBEX Tender

Bulletin Express10-21

China Isotope & Radiation Corporation (CIRC) has approved a public tender to raise new equity for its 93.15 %-owned subsidiary, Chengdu Gaotong Isotope (CNGT), on the China Beijing Equity Exchange (CBEX).

Key transaction terms • Size: 17.65 million new CNGT shares, equal to 20 % of enlarged capital. • Investor eligibility: PRC-registered entities (excluding Hong Kong, Macao and Taiwan) with sound credit and financial strength; no consortium bids allowed. • Tender timetable: Notice posted on 21 Oct 2026, with a 20-working-day announcement period. Prospective investors must pay a deposit of at least 30 % of the intended subscription by 18 Nov 2026. • Selection process: If more than five qualified investors emerge, CNGT will launch a formal selection in line with CBEX rules. Final consideration and investor list remain undetermined.

Strategic rationale Proceeds will fund construction of R&D and production bases for radioactive sources, boost capacity, support new-product development and replenish working capital. CIRC also aims to introduce industry partners to widen market access and technology cooperation.

Impact on CIRC Post-issuance, CIRC’s interest in CNGT will fall by approximately 18.63 percentage points but the subsidiary will remain consolidated. The move is expected to diversify CNGT’s shareholding structure while preserving CIRC’s control.

CNGT snapshot • Ownership before increase: CIRC 93.1533 %, Sichuan Qingyi 3.2586 %, MASEP 3.0922 %, Nuclear Power Institute of China 0.4959 %. • 2025 audited results: revenue not disclosed; net profit before tax RMB96.56 million, after tax RMB83.22 million. • Balance sheet at Dec 2026: total assets RMB1.69 billion; net assets RMB555.82 million.

Regulatory considerations Under Hong Kong Listing Rules, the deal would be classified as a deemed disposal and, if completed, may constitute a discloseable and potentially connected transaction, subject to further announcements once pricing and investors are confirmed.

CIRC cautions shareholders that the capital increase may or may not proceed and advises prudence when dealing in its shares.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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